##  [# iShares Launches Bond Factor ETF](/sections/daily-etf-watch/ishares-launches-bond-factor-etf) 

 

# iShares Launches Bond Factor ETF

 

 

'USBF' aims to apply smart beta to the bond markets.



 

 

 

 

 [![DanMika200x200.jpg](/sites/default/files/styles/author_image_icon/public/2023-02/DanMika200x200.jpg?itok=W3yFiWn- "DanMika200x200.jpg")](/contributors/dan-mika) 

[By Dan Mika](/contributors/dan-mika)

 Oct 14, 2021

 Edited by: Dan Mika

 

 

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iShares is adding to its large stable of ETFs with a bond fund driven by a multifactor index.

The [**iShares USD Bond Factor ETF (USBF)**](https://www.sec.gov/ix?doc=/Archives/edgar/data/1100663/000119312521289927/d238128d485bpos.htm) debuted on the Nasdaq Thursday, sporting a 0.18% exchange ratio.

USBF will track an in-house BlackRock index that uses macroeconomic factors and a value and quality factor to choose bonds to outperform the aggregate bond market while maintaining a similar risk structure. Any U.S.-dollar-denominated bond is eligible for inclusion on the index regardless of investment quality.

The index rebalances on the last business day of each month.

The closest existing competitor to USBF is the [**WisdomTree Yield Enhanced U.S. Aggregate Bond Fund (AGGY)**](https://www.etf.com/AGGY), a $1.1 billion fund launched in 2015. While AGGY is limited to investment-grade assets, it uses its own multifactor indexing strategy to seek higher yields than the broader bond market while keeping its risk profile in line.

*Contact Dan Mika at* [***dan.mika@etf.com***](mailto:dmika@etf.com)*, and follow him on* [***Twitter***](https://twitter.com/DanMikaTweets)



 

 

 [ Dan Mika ](/contributors/dan-mika) 

 

 

  Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in…   [View Bio](/contributors/dan-mika)

 



 

 


 Related Topics  [Fixed Income](http://www.etf.com/topics/fixed-income) 

 [Smart-Beta](http://www.etf.com/topics/smart-beta) 

 [Bond](http://www.etf.com/topics/bond) 

 [Broad Maturities](http://www.etf.com/topics/broad-maturities)